Democrats defend Obamacare benefits in COVID era – and avoid cost questions

Several Democratic senators appeared ready to extend COVID-era Obamacare tax credits, delaying spending legislation needed to reopen the government — but less willing to address what that would mean for the country’s spending.

“I don’t agree with the definition of an increase in the deficit,” said Sen. Chris Coons, D-Dl., when asked about the program’s implications for the nation’s bottom line.

Others, like Sen. Alex Padilla, Democrat of California, declined to respond.

Sen. Chris Coons, D-Del., walks through the Senate subway at the U.S. Capitol in Washington, January 2025. (Anna Moneymaker/Getty Images)

The country plunged into paralysis earlier this month when lawmakers failed to agree on a short-term spending extension that would have funded the government until November 21. But the disagreement wasn’t over the package itself. In 2021, Congress temporarily expanded eligibility for Obamacare’s enhanced premium tax credit subsidies, intended to help Americans pay for their health insurance plans amid the uncertainty of the pandemic. This increase in eligibility expires at the end of 2025. Democrats have made maintaining the program a key condition for supporting any spending package.

Republicans need at least seven Democrats to advance the spending legislation in the Senate, where Republicans must clear the 60-vote threshold to overcome a filibuster. The GOP holds 53 seats in the House.

OBAMACARE SUBSIDIES AT CENTER OF DEM’S STOP FIGHTS ‘FUEL’ HEALTH COST INFLATION, CONSERVATIVES SAY

According to According to the Committee for a Responsible Federal Budget, a nonpartisan fiscal policy think tank, continuing to increase appropriations could cost more than $30 billion a year.

While Republicans see the expiration as an opportunity to return government spending to pre-COVID-19 levels and reduce the national deficit, Democrats have expressed concern that recipients could face an abrupt end to their federal aid.

“There are literally millions of Americans who will no longer be able to afford or be excluded from their health insurance when the tax credits that make the Affordable Care Act affordable expire at the end of this year,” Coons said, referring to the 2010 health reforms that gave Obamacare law.

Senate Majority Leader John Thune, R-S.D., speaks to the media next to Vice President J.D. Vance and House Speaker Mike Johnson, R-La., just ahead of the Sept. 30 deadline to fund the government. (Kevin Lamarque/Reuters)

Other Democrats pointed to health care as the key factor at play.

“Republicans must restore health care for the American people. That’s my position,” said Sen. Mazie Hirono, Democrat of Hawaii.

Findings from KFF, a health policy think tank, indicate that more than 90% of the 24 million Obamacare enrollees use the enhanced credits.

DEMOCRATS BLAME GOP FOR OBAMACARE’S WORSE RELATED TO PANDEMIC-ERA SUBSIDIES

Democrats have voted ten times against reopening the government since the start of confinement.

Lawmakers like Sen. John Curtis, Republican of Utah, pushed back against Democratic opposition, pointing out that the credits were always intended to be temporary — and that it was Democrats who initially included the sunset provision.

“This is a crisis predetermined by Democrats,” Curtis said. “They are the ones who put the expiration date on these products.”

That’s also the position of Sen. John Boozman, R-Ark.

“What concerns me is that (the credit expansion) was done during the pandemic, because of the pandemic. The pandemic is over. As a result, people are making $300,000 on a grant.”

“So what we need to do is open up the government, not take the American people hostage and start talking, because some people will be hurt,” Boozman added.

MODERATE DEM SANE JEFFRIES ON OBAMACARE COMPROMISE AS GOVERNMENT SHUTDOWN APPLIES

Boozman is not the only Republican concerned about both: skyrocketing government costs and Americans having to adjust their payments to be able to afford health care without subsidies.

Sen. Lisa Murkowski of Alaska, who has cautioned against sudden changes to health care programs, said discussions to advance both priorities have not made much progress.

Senator Lisa Murkowski, R-AK, at the Congressional Picnic on the South Lawn of the White House in Washington, June 2025. (Al Drago/Bloomberg)

“I’m trying to find a way to ensure health coverage continues for Americans, and we’re not making much progress this week,” Murkowski said.

Other senators suggested the talks were moving forward in some way but declined to describe them.

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“I’m not engaging at this time because I may or may not be involved in negotiations on ultimately resolving this issue. At this point, until the Democrats open up the government, I’m not going to discuss the details,” said Sen. Mike Crapo, R-Idaho.

Both houses of Congress left Washington for the weekend. The Senate will return on Monday.